The minimum wage in Australia will increase by 2.5% on 1 July 2015. The new minimum wage will be $656.60 per week for a full time employee.
Employers need to review their pay rates to ensure they are compliant with the new minimum wage rate from 1 July 2015. Employers need to be aware that the new minimum wage rates applies to junior employees, employees to whom training arrangements apply and employees with a disability, as well as piece rates. Allowances that are calculated on the award wage rates will also be affected.
The minimum wage increase affects minimum wages which are set out in modern awards. Most employees in Australia are covered by a modern award. One of the exceptions is high income employees. A high income employee is an employee who earns more than $133,000 (as from 1 July 2014 but this rate will most likely increase from 1 July 2015).